Tough Q4 for Miller Coors

MillerCoors’ net income slid by 21.6% in the final quarter of 2009, with a dampened economy taking a 4% bite out of the brewer’s volumes during the period.

The States’ second biggest brewer, a joint venture between SABMiller and Molson Coors, said today underlying net income stood at $106.1 million for the three months. Revenue was $1.71 billion, down 1.6%.

“It’s tough out there, and we saw the effect of ongoing economic pressure and unemployment on beer sales, especially in the fourth quarter,” said MillerCoors’ CEO Leo Kiely.

In the final three months of 2009 the brewer shifted 15,411 barrels, down from 16,091 in Q4, 2008. Full-year volumes stood at 69,098 barrels, compared to a combined figure of 70,628 in the previous year, but underlying net income climbed by 18.4%, or $138.7 million.

Domestic sales to retailers fell 3.6% during the fourth quarter thanks to what the firm termed “poor industry and economic conditions”. For the full year the slide was 1.7%. Fourth quarter and full-year sales to wholesalers declined by 4.2% and 1.7% respectively.

Sales of the brewer’s premium light brands, including Miller Lite and Coors Light, declined in the mid-single digits, on percentage point basis, said the firm, with the decline being offset by growth of the MGD 64 brand. Below-premium brands were down “slightly”.

The firm’s craft and import portfolio “fell slightly”, despite high single digit growth of Blue Moon and low single digit growth of Peroni. The domestic above-premium portfolio, including the Miller Chill and Killian’s Irish Red brands, experienced a double-digit decline.

“We stayed focused on our strategy and invested to grow four out of our six national focus brands in 2009,” added Kiely. “Our people made it happen, delivering strong profit growth and exceeding our synergy commitments in the midst of a recession.”

Formed in 2008, MillerCoors is on track to deliver $750 in synergies by 2012, said the firm. In the fourth quarter the joint venture delivered $62 million in synergies, bringing the full year total to $245.
By Rob brown

Based on the following sources:
http://www.brewersguardian.com